ODEP-PCPID Forum on Employment of People With

Intellectual Disabilities

Benefits to Enhance EmploymentProfitability and Asset Accumulation

Michael MorrisCEO, Burton Blatt Institute – Syracuse UniversityMonday, September 8, 2008

“My American Dream is to live on my own, work and have friends.”

Ohio Asset Development Summit Participant, November 2007

To enhance employment profitability requires changes in policy, culture, capacity and expectations.

A culture of dependence on public benefits is being transformed by a new roadmap out of poverty that recognizes the value of economic empowerment must stretch beyond work to saving, asset building and advancing self-sufficiency.

Three-Part Presentation Context

Strategies

Next Steps

Context Americans with Disabilities Act (ADA) Olmstead Decision GAO Perspective CMS (Disables and Elderly Health

Programs Group - DEHPG) Strategic Action Plan 2007-2009

Statistical Perspective

The Americans With Disabilities Act of 1990

The Nation’s proper goals regarding individuals with disabilities are to assure equality of opportunity, full participation, independent living, and economic self-sufficiency for such individuals;

42 U.S.C. § 1201(a)(8) (2005)

Olmstead Integration Mandate (1999) Improve availability of community-based

living options with needed long-term supports

Rebalance public resources Improve consumer self-direction Improve community participation

Government Accountability Office (GAO) Agencies and programs generally operate

independently of one another; Difficulty communicating and coordinating with other

programs serving individuals with disabilities (2005); A myriad of policies and procedures from other

systems that do not work in concert with one another (2007);

Fragmentation of federal disability programs; Patchwork of federal policy and program initiatives; Defining and articulating a common outcome will

enhance and sustain collaboration among federal agencies (2008).

CMS Strategic Action Plan (2007-2009) Person-centered long-term support

system Respect choice and state flexibility Provide individuals the tools they need

to lead self-determined lives Support economic self-sufficiency

initiatives

Statistical Perspective Students with disabilities are twice as likely to

drop out of high school than students without disabilities.

Only 21.7% of people with disabilities were employed full-time compared to 56.6% of individuals without disabilities.

Working age adults with intellectual disabilities are ten times more likely to be living at or below poverty levels as compared to individuals without disabilities.

Statistical Perspective (continued)

As of March 2008, 1.1 million children nationwide receive SSI benefits.

Two-thirds of these children will remain on benefits for life.

The cost will be in excess of 200 billion dollars.

Statistical Perspective (continued)

There are over 10 million recipients of Supplemental Security Income (SSI) and/or Social Security Disability Insurance (SSDI).

In 2008, SSA will expend over 125 billion dollars in payments to SSI and/or SSDI beneficiaries.

Only half of one percent (.5%) of SSI and/or SSDI beneficiaries return to work.

“Historically, public assistance in exchange for enforced poverty and the absence of freedom is a bad deal - one that fails all parties to the arrangement; people with disabilities, their families, and the American people.”

President’s Committee for Intellectual Disabilities: 2004 Report to the President

Asset and income limits for major entitlement programs (Social Security, Medicaid) to remain eligible is a no-win situation.

These policies perpetuate the myth that people with disabilities can’t work and don’t want to become self-sufficient.

Enduring poverty and lack of economic empowerment will:

Diminish choices and quality of life within communities and

Singularly diminish freedom, opportunity, and self-determination.

Strategies to Focus on a Better Economic Future

What is Economic Empowerment?

The ability to develop and control income and assets

The capacity to preserve and grow resources that expand life choices (live, work, play)

Assets include savings, investments, home and/or business ownership, a means of transportation, and products

Why is income preservation and asset development important?

It will positively impact self-concept and level of community participation.

It will change expectations and status with other community stakeholders.

There is no single strategy or solution that will overcome multiple barriers to advance greater self-sufficiency for persons with significant disabilities.

The foundation to build an “Advancing Self-Sufficiency” framework is the principles of self-determination. Freedom to make decisions and plan short and

long-term; Authority to control how money is spent to

provide needed supports; Support from families, friends, and others you

choose for yourself; Responsibility to do what you say you will do.

State plan option 1915(j)(3) and Medicaid Home and Community Based Services 1915(c) are a starting point to focus attention on the importance of: economic empowerment income production and saving asset development

to tear down barriers to community participation.

Emerging Tools and Strategies Financial Literacy and Access to Financial Services Favorable Tax Provisions (EITC) and Free Tax

Preparation Individual Development Accounts Home Ownership Work Incentives Microenterprise Development Ticket to Work Medicaid Buy-In

These tools (IDAs, Tax Credits, Microenterprise Development, Home Ownership) were focused on low income working families, not people with disabilities. People with disabilities are a new market segment!

Earned Income Tax Credit (EITC) Created by Congress in 1975 to provide an

incentive to work for low-income families. Refundable Tax Credit Twenty percent of individuals who are eligible

do not claim the credit. An estimated 1 million individuals with

disabilities annually do not claim the credit. Split Refund: New Option VITA - Free Tax Preparation

Individual Development Accounts (IDA) Matched Savings Plans Targeted Asset Goals Financial Education Over 30,000 IDA Accounts Open Match Earned Income

Family Self-Sufficiency Program Escrow Account with a bank/credit union Intensive oversight of employment goals Withdrawals on a case-by-case basis for

home ownership, transportation, education, other

Housing Choice Vouchers limits rent to 30 percent of income

Social Security Work Incentives Options to increase income, save, and

advance self-sufficiency Over a dozen different work incentives

IRWE: reduce income due to out of pocket disability-related expenses

1619(A) and (B): increase earning beyond SGA to remain eligible for Medicaid

PASS: Plan to Achieve Self-Support excludes income and resources from countable assets that are set aside to reach a specific occupational goal.

What is Missing?

A bridge to connect existing programs to other organized efforts to advance community inclusion and self-sufficiency.

“The Bridge” Person-centered planning Individualized plans Individual-directed asset account

Individualized Plans (Nine Federal Authorities)

AgencyA. CMSB. SSAC. LaborD. SSAE. HHSF. EducationG. VRH. MHI. HUD

Approach Individual Budgets Ticket to Work Individual Training Accounts Plan to Achieve Self-Support Individual Development Accounts Individual Transition Plan Individual Plan for Employment Recovery Plan Family Self-Sufficiency Plan

Refine and Reframe the Focus! Focus on “Advancing Self-Sufficiency” and

raise expectations beyond employment and community participation.

Focus on income production, saving and asset building to advance the level and scope of community participation.

Focus across federal systems of support to access tools to preserve income and build assets.

Braiding of Resources IDAs, PASS, Family Self-Sufficiency

and Housing Choice Voucher, EITC, and start your own microenterprise.

The possible pathways to advance economic independence are greatly expanded.

Braiding of Resources Knowledge is power! What happens when you use all of

these tools and strategies to advance your economic independence?

New Approaches - New Partnerships Real Economic Impact Tour (

www.REITour.org) Asset Development Summits Work Incentives - Asset Development

Curricula

Emerging New Partnerships Mayor’s Offices United Way IRS

FDIC IDA Providers EITC Coalitions Financial Institutions Microenterprise Lenders Home Ownership and Credit

Counseling Programs

DD Council VR Agency Social Security Field

Office WIPA Grantees ARC Centers for

Independent Living Goodwill Community Action

Agencies

Next Steps for Federal Agencies Individual Account and Asset Building

Workgroup Collaboration with REI Tour Pilot Braided Individual-Directed Asset

Account Approach with Selected States Training and TA to Transform Culture Disseminate Best Practice Examples to

Build Capacity with Public-Private Sector Collaboration

Align Policy and Adopt Common Goals Explore options to create a unified individual

account; Simplify the assessment and application

process for potential eligible individuals; Centralize the collection of and share

background information on applicants; Pool resources for a collaborative person-

centered planning process; and Create a braided account that promotes self-

determination and economic empowerment.

Conclusion - Better Economic Future Align Disability-Specific and Generic Policy Raise income and asset limits for remaining

eligible for public benefits Leverage public and private sector resources

and develop cross-system collaborations Orient individual plans toward economic self-

sufficiency goals Document and market contributions to an

inclusive workforce and real community economic impact